In 2011, solar power investments seized a huge 49% share of global renewable power investments, compared to the 34% share given to wind power.
China looked to become a future investment giant in the solar market, as the state government planned financing of around $US100 million to develop projects throughout 40 African nations, where large prospective demand markets were enabling China to expand its production targets.
As a result, China’s solar module manufacturers were planning to increase their production capacity drastically, adding 3.6 gigawatts of module production capacity in the country by 2012.
The report stated global renewable power investments reached $209 billion in 2011 as the industry witnessed changing geographical opportunities.
Renewables received high investment in the US, while changing economic conditions in Europe affected available funding.
However, government policies continued to prove a major factor in the renewable power market, encouraging the worldwide switch from carbon-emitting methods to clean power generation.
Venture financing and private equity investments were also high for solar technology developments.
With solar power prices approaching grid-parity, asset financing investments in this area have witnessed a higher growth rate than other renewable generation technologies.
Renewable power investments from Europe are anticipated to drop in 2012 as the region’s credit crisis continues to damage economic stability.
However, North America would continue to demonstrate high investments in both solar and wind power, particularly towards the development of new wind power projects.
The renewables industry was also expected to see growing investments in the Asia-Pacific region as low-cost equipment manufacturers tempt the market with competitive pricing, while some countries in the Middle East and north Africa, such as Abu Dhabi, Dubai, Saudi Arabia, Morocco, Algeria and Jordan, were tipped as upcoming solar power investment destinations for major market players.
The report was built using data and information sourced from proprietary databases, primary and secondary research and in-house analysis by GlobalData’s team of industry experts.
